"""Btw, if you roll down(to the 20's) now, you lose the leverage that a zero spread offers at OPEX in Jan. on the short leg. IOW, suppose we are at 20.00 in Jan. The 22.50s are worth 2.50, so we are down 1.00. Buy back the 22.50's and roll out to Apr or June, to the same 22.50s for 3.50. Net credit +1.50, minus 2.50, + 3.50 = + 1.50."""
Doc, I just re-read your post and found your numbers confusing, I thing it should be:
Net credit from first trade is +1.50 , minus 2.50, +3.50 = + 2.5, right? or am I missing something to the equation?